A strategic study of employee experience (EX) initiatives in leading banks in APAC

Explosive growth awaits the banking industry, and banking in the future will look very different from what it is today. twimbit forecasts the per capita consumption of financial services to increase dramatically as banks redefine and integrate banking seamlessly into customer journeys.

In this report, the twimbit analyst team helps Chief HR Officers (CHRO) and HR specialists of the banking and financial services (BFSI) industry understand the importance of employee experience (EX). Our team also outlines best practices from the top 10 banks in APAC who have gone above and beyond in redefining EX for their workforce.

We believe that developing capitalism that is stakeholder-centric requires transcendence from the statement of purpose to that of action. Shifting the traditional model that is the basis of employee experience to a digitally transformed HR function that delivers EX as critical as customer experience (CX) is the real challenge here. Hence, the core ingredient for success is how banks elevate their employee experience (EX) to manage four key digital trends that are transforming the banking landscape:

Our endeavour at twimbit is to help establish benchmarks and insights on how you can continue to drive change in your workforce. A world where stakeholder engagement defines the conversation about shareholders, rather than the other way around, is one that will revolutionise employee engagement and workforce management.

Why is EX imperative for banks moving forward?

The three questions for designing EX

Our methodology

The objective was to benchmark and identify APAC’s best banks who are leading the way when it comes to developing great employee experiences. We developed a five-point framework to help set the EX standard for banks across APAC.

twimbit’s EX Framework

twimbit’s top 10 banks making EX experiential

Top 3 Challenges prevalent in the banking industry

EX recommendations for the banking industry

A dedicated CIO for the HR organisation

As a CHRO, a key priority is to transform the HR function digitally. Having a dedicated CIO that works exclusively for you will go a long way in bringing attention and focus to employee journeys. The employee-focused CIO will bring a nuanced understanding of technology and create a technology-specific functional vertical within HR that provides insights into recruitment, ascension, retention, and digital capabilities. While the CIO for the HR organisation reports to the CHRO, he or she should also be part of the larger CIO organisation. This will ensure a tighter integration between employee and customer journeys.

Some of the approaches that help the CIO make the EX as great as the customer experience (CX):

1. Directed focus on HR analytics
   Leverage data & insights (analytics) to be a strategic partner of business

HR analytics is all about unlocking levels of trust in banks. CIOs understand how powerful artificial intelligence and predictive analytics can be to create a digital representation of the employees in their organisations. Ultimately, they can then use this to propel hyper-personalised experiences at the moments that matter in the employee journey.

HR analytics can help CHROs and HR specialists in areas that they struggle, including:

2. Defining “moments that matter”
Reimagine employee journey using data, from attracting candidates to exit

Since EX is a catalyst for CX, it is helpful to understand the type of data used in CX to determine EX moments that matter. This is achievable by understanding X and O data types. X-type data describes experience, while O-type data is operational. Essentially, X-type data explains what happened from the customer’s side, and O-type data explains why it happened from the firm’s perspective. Hence, the CIO can create a predictive employee journey to understand inflexions in every career stage.

These employee journey maps can be simulated and updated to reflect business changes, career choices, manpower needs, skill changes, and progression. Therefore, helping CHRO and HR specialists to understand which moments matter for different groups of employees from various backgrounds and age groups and what process or policy decision will ultimately realise success.

Supporting the build-out of a tech workforce

Banks are making the transition from being financial service providers to becoming technology companies delivering financial services. This requires a massive organisation transformation. They need to acquire new tech talent, obtain talent in every domain that is tech-savvy and, importantly, reskill and upskill existing talent to meet the needs of tomorrow.

1. Acquire new digital talent

The leading banks are ramping up their tech talent and expect up to 20 per cent of their employees to focus on technology development. Some banks are investing so heavily in technology that they are filing more technology patents than many technology companies. This requires them to compete with the world’s best technology companies to become an employer of choice. Positioning the bank as an exciting place for the tech talent to harness and grow their skills will be a priority for the HR organisation.

2. Reskilling and upskilling

The banks should expand the existing nature of their employees’ roles to include skills that will become part of the “new normal”. Many banks have already begun upskilling their staff by educating and building their digital capabilities as frontline jobs now face redundancy. This process is a bit longer but imperative for banks as it involves retraining employees for “new roles” that have popped up as a consequence of digital transformation.

Partnerships

The shift to ecosystem business models brings to fore the importance of partnerships. It is the new operating model that will determine success for banks in the coming decade.

Partnerships enable a bank to:
o Acquire new customers
o Gain access to new types of data
o Deliver superior customer experience with innovative products
o Extend footprints beyond geographical and cultural borders
o Access to talent

HR leaders need to view these partners as part of the extended organisation. Tighter integration of all EX initiatives with partners will drive greater success.
As a bank leader, how ready are you to right-size your bank with collaborations and digital initiatives?

Elevating mental wellbeing options

Employee wellbeing in the banking industry has been under the magnifying glass in the past year, as the pandemic outlined major worries that adversely affected employees’ mental health. Banks are addressing these issues by a cultural shift built on the foundation of strong principles and values.

However, moving forward – mental wellbeing cannot just be a seasonal effort. It should instead be a continuous initiative that is a practice at every employee level. Rebuilding morale has to be part of the goal as team members face amplified pressure due to a workforce that is now lean. Additionally, as a CHRO or an HR specialist, you should support employees in overcoming any digital fatigue that may arise with adopting digital tools frequently, long screen hours, and changing processes with digital transformation efforts.

While mental health is usually an unspoken initiative that runs in the background, banks need to speak about this vital aspect boldly. It is crucial to have tangible initiatives that can help employees build resilience in tough times.